THREE WELLS BLANK

Evening Post, Volume CXII, Issue 135, 4 December 1926, Page 11

THREE WELLS BLANK

BUT PROSPECTS GOOD

011 HELPS, LTD

1 «< SHOULD ULTIMATELY. A.CJ"I lEVB ij SUCCESS."

If is freely .admitted that this venture is the first sustained ef-fort-'guided.;by expei-t- ■■ scientific direction, and employing:--modem drilling- equipment' that h 3 been Bttd« .to. find oil. in the Dominion. »j The'e'onsensus.df geological opinion. J ' "is that commercial oil 'exists iii the % • territory'in ivhich the' company is fl' :;opeTafiiig. While some sense of j-" with rogard.-to the; ij.-,i. company's, initial drilling work is H i:k vimivxjidable,. .tlio more . reasonable U-'S'vjev.r.is that,as. a .result of syste,----1 ;i;;.Vmntic:detai!cii"g.eologieal woik, and ; -i^tha^eflicient drilling of several of, - "the most promising • structures,, the ; : company's effortsishould ultimatej ]y achieve success, ''

Through three wells have been aband-oned^-two in: .Tarariald, West • Coast,' and one in Waiapu, East Coast —the above, passage, ..sunis up the. confident spirit..in., svlucji the, general manager > of, fHavtmjjM: -Oil.-. Fields,- :Ltd., Mr. A; v'-H. P-.■■ Molihe, faces futuro operations. :';.! fiie passage is taken-from his .ar.nual ". .lepovt^ fiii. wliichlie also, says;—

r !'■■■■;'*Af tha-tfific tli'ff company was floated the prospects actually ill "view " were those presented- by the field at Motu-roay-whicli' had' produced oil "-in- semi- ! commercial quantity" in past years, to- ■ gether with a structure ■ which had befeiv1 discovered in tho' vicinity of Tar ■iaAo.it ■■'.;■ Oho testf of each of these lo,ealitieß;:,has since'beea made,' with the 'result that, at: Moturoa several proinis--ingushows-of oil were got, and atTarata a bed of sand 95ft in: .thickness

! was found at a depth of 4830 ft. The j well drilled..for ;.W^apii',<N.Z.) Oil : Fields, Ltd.; in. which concern your I company is, largely interested, alsol } gave hegativa results. In view of the | vastly, ■wider and,more .^detailed ;know- ! li?di[e ; pf the geology of New Zealand ! which'tW,.company now. possesses as ;. tijp;.riesiijt of.tlie last.'two,years' work,

. iii'is'a fajp," statement*- that ; notwith- :". standing;the failure.to find.commercial .-.oil in the first-three, wells drilled, and ...despite the admitted difficulties which ...still,'have to ;be, overcome,. the . :pros-,-.pectS/,;J4Oiy are, at. least as promising, '■. said fprbbably '.more..: promising, than A-- they- were;a.fc;the time-the company.was floated." ■ ■ -i As showing .how; the course of events is eonsL3|ent.with anticipation, Mr. ,-Moline quotes Mr. F. 'G; Clapp', who, in his report on tho Poverty Bay district, said: —"-This country-is potentially favourable, ami success is expected; but per-' haps not in the' first two or . three' iv .jcejis. Consequently^, my recommendation that the field:be tested carries with' it the proviso that at least six tost ■vrejls. should.be drilled, .f.or.,the complex conditions do liot warrant pro-, feedure-on'tlie' expectation' 6f overborn-; ' itig'the- tnany difficulties and learning" ;th.e;;true worth :of: the field" in a less ... .number of tests. I'- ;The. same.Tema'rk, ; ; comments Mr v Holjne, might, be. made :' with regard to any new field. ;..■'..., , /^6 CONDBMNATION. . '■ . ■ j,., ; .Thej. ; spiTit, expressed iby the .general ; i ; .- ; lj»anager.. is ateo^iound in the annual ■; u i- jpgprt^ o£ the,, directors-for the ■ year (ipn^ei- Slsfc.Jfuly,.'l92B,- frojn..-wfticfc is--u, .^aken,~the/following:— '.'it is 4 :with»>na-' :|s turaiyregret;.that your, directors report' I, .tifl-aijaujtopmeni/jowing; to lack;;of- en-' „ . .eouragiaig inriieatiofis, of the wells at; ...Tirata'and (Moturba, :an"d (since the .' close-.of the financial year) of the No. ' 1; Well, "for ■ subsidiary Waiapu •:.:Gompahy; '..These' disappointments, . iowevor, do.noti in'tha opinioi of our ■ technical dffi«efs;" carry with them any „ 'general riJCtfdoriination of the'extensive ai-eas-' covered by 'the1' company's- "oil" rights which, hstve'not yet'been tested ,'. by ;the: drill." On the contrary, it is to., /' $ia> 'b'oViie/;in -mmd': tnatj'' While "drilling : -hSs' 'been' proceeding,'. the- company V territory3n'-6ther regions has be'eii'sub■j^e'ted'to''ca Tfe*ful,' ''systematic}' and 'sus-' ■■•' tßined: investigation by tiro geologists,^ •■■ %ith"aVview to the'compilation, of data 'Wiic^'will enable.; the' numerous struc- '-,: to bo greeted in. order of their ;'. jfospects. '.The result is;that at date a ■"""great deal.'kiore is 'kno\iA'.o^.Mb\ vari-' ""'■' ous'-aVeak thaii' when .the;' Wells,..now '' '!;!sandpne;d'j_ were, , arid, the eojnjiiany His ;thus jfr.' a. 'better",position" •'itS&'^'t' a&yy' fime.. pi evipusjy, to' select ''^it's'3fut'ure;"w,pli;sites', '.'■■•'- "■';"■■• ; - -■ ■■ ■ ,'J '.'.Oii'. 'theYadvice...";of tho.' geological 'y~'kti)M,r. aictiye,preparations are. in hand • '|.p' bpipineiice^..drilling. another well, in ;' .'"iWdiiipu. .. Co'uiityV^'in-.the,.territory.,ps- and. ;','.te.- ! !igr^ement...,with „. (N.Z.). ■.'■pil'.fields, i]td'J ; concerning, which,, tho. '.. J'|gllpjjvjiig v ;su?imary, qf the geologists' opinions has been supplied by the gen- .; .■fiXfiJt .manager;;. ..The, .^xi^tence of, this lira's indicated by Mr.;-,'Clapp' ;^ ; ,duij|iig jj/a" survey, .of-.the.- district, • and.' ' v |hQi,:structura : j details-, have been' work-!) ,' ■iojttr'oul^sinee, with the result that Mr. : ' . ..,A%s'hburne. saysi,:.-'ltiis a pleasure to : import, that recent =work..on- area 32 in- ■; V/; .,'4i&ates,.tha:t.it is argood structure, and, ■, 1 . ; ,;that...1 have no further '^hesitation' in' ..^.Qcommenaing.ai.boreon it.^, •■f^^^'.'^aE objective,' „' '■;.'.... .:■£_ objective:.on.-this area consists x' vnM.is.known: as the.-igneous con.(.^■.igipiHerate, '■• -which.-.is known to ■ exist at'fchq;.base. of the tertiary rocks over- ; ;f Jjajjg;.the ■ crotatepus; rocks,' and it is . Iftntjeipated that: 1500 ft. of drilling •■':.ißiio\il(ijpeuetrate the conglomerate. The '■' • J '^»a- 1 ./»f;. closure, 'that- is to. say," the- : „, itvea fWithia which may expect to • „ifihd $ilj is,:.pf the <(rder of■ half a square !.,-'faile',.,.bu.t:.itt." adcl.iti.on to- -this igneous v^onglometate there-, are known to' be ■\ltj)Osrpu«-Bands'.;.in the. cretaceous rocks: VvWAthtfi; 3Sooft of -the surface, and the: :.;.|tr-ji&tural.,-conditions .-are:'such that- in '.'..; ,^he ; eretacepus -beds., the•■ area of closure v.Jnay.- be as ,:large. as;-five: square miles. ,£■*££, -on -reaching the igneous conglom...",'erate, ;',iji..,is desired .to \ continue drilling; •,..'jn,-.prde.r. .to,, s te&ti the ■. cretaceous sands, ■ :i. t .,,the-.company-..has the, choice-of either continuing the .-well- or- moving the equipment about +Jjreo..<miles to the, ,nortbj th'js point being, rnqre.,centrally vbittJafced With regard- to' the formation; in the lower.beds. ..The location is about 10 miles by road from Tpkomaru Bay, r.l?a.tf3y"-:'wi-tfe'-'- the^..construction of something less than•"• a mile of new i-oad, transport conditions during the summer months will be satisractory. It is ant'i-. cipated that plant 'can ..bo transported... to this"sitb, erected, and ctvilling com-. . : me.nce,d: before ;tlie close of the year. It ,v-?is ~hppod- that,= ■-unless'" unforeseen- cliffi■'■■■''cultie's.should pV.escnf themselves, the ?"igneous' conglomerate will .be Teaehcd 't' ;by~,J't|iß drill dii'ri'ng..the first quatter of. ;':jg2r;; :':-...:.:'." ":- •■; ■-.' ' '--. ' -',-: . i-.C :: C:':. ':■ STAPF CHANGES. - ..-. ■■ ■■•■''—*■'^ar'iom;. changes, in the company's. ;".^pi.ogical;';'staff '.Vhavo i taken., "plaao!; '■t/.tJifbugh., .expiration 'of ■ soryico ..agfee-. ... m?nt, ani.like.-.causcs v - but' the high . .'.flltaaclar(i-.of"Skill. and:experience- whichi■. was;set wheir the original appointments, ■:»'.wer£ made: has been maintained. ' Tho. - ;;3&acling ;menibers ;of 'the present staff, : ;'"ln •"pafticuTaiy liaye had lengthy .anil,. * '■'siicce.ssfui s.e'rvice. in oil fields in .other' ;w parts' of the w0r1d..'..-.'.Mr, .Chester -W. .. v .AYash i b.urne,-ha'viiig completed -the,term; of his engagement, and after carrying out 'a"'^considerable: amount "of importnnt amr-va'hiftblc geologic.il work, is <!s#h.ort:ly..i'.etttruiitg to.tho.United States.' ' '■ -'MT;f<Ar+hur-B: ; Anfltcwiß.Sc.,.-J'';GiS., M.A.1.M.M., M.Jjist., Pet. Tech., has

been appointed chief geologist. Dr. Andrew is a..graduate of tho University of Now Zealand, has for many years beeft in tho service of tho Dutch Shell Company, and has recently been engaged in Central Europe and in Borneo. .■■'■*' '

"Your directors realise that shareholders are anxious" to have whatever information, is available which may as-, sist them in v gauging the prospects_of flic company's future work. According to the nature of the industry, no prophecy , can be offered, but your directors are. unanimous., in believing that the wider experienco and more detailed knowledge gained' (concerning the company's'properties) justify a continuance: of -their, confidence in tho outlook. . The technical officers of tho company, experienced in oil fields abroad, declare their confidence in the future ; of tho field; and your directors think it ,a, most satisfactory- feature that these expressions are based on'tho recognition,' in our territory, of geological features ' which (particularly in ■ America) accompany successful production. That is to say, the New Zealand properties do not present new and unexpected .features which have to be interpreted in a. theoretical way; on tho cpntrary, there tire abundant data and ckperiencQ from the exploitation of similar country overseas, to guide tho .field staff in.their interpretations. ' As .the result of the past year's work, the company already' has evidence that several'of its .areas are definitely worthy of testing, and tho aim of the "board is to act upon'these recommendations as promptly as possible. At the same time, duo-regard must be had to other investigations iii progress and to the possibility that they will point to even better; locations.' The. objective is to apply tho' company's resources in tho most effective-way, and to sink each well on the location of best promise."